The COVID-19 pandemic had a significant impact on KiwiRail’s bottom line for the past financial year, but rigorous operational changes and cost savings measures have helped stabilise the business, KiwiRail chairman Brian Corban says.
KiwiRail Holdings Limited, New Zealand’s national rail provider, which also operates the Interislander ferry service across Cook Strait, today reported an operating surplus of $40 million1in FY20 for the KiwiRail Group, down $15 million compared with FY192.
FY20 was also notable for the additional $1.2 billion of Crown funding allocated in Budget 2020, including $400 million to progress the iReX project to replace the three ageing Interislander ferries with two brand new ones. When they arrive, they will be the first new purpose-built ferries in Interislander’s fleet for 25 years. The Budget 2020 allocation also allows the purchase of new locomotives.
Mr Miller explains that COVID-19 interrupted progress on some significant projects including the rejuvenation of the North Auckland Line where $35.5 million of $164.5 million allocated by the Provincial Growth Fund was spent during the year. More than 400 staff, contractors and sub-contractors are at work building tracks, replacing bridges and making tunnels suitable for wagons carrying hi-cube containers in Northland.
Other highlights during the year included the full return to service of the Main North line through Kaikōura and, in Wellington, work advanced on upgrading the metro network including construction starting on a second 2.7km track between Trentham and Upper Hutt.
1 Operating surplus represents earnings before depreciation & amortisation, interest, impairment, capital grants and fair value changes.
2 FY19 Operating surplus of $55m excludes impact of non-recurring items ($29m Holidays Act remediation).
Mesa Air Group, Inc. (NASDAQ: MESA) announced that it has finalized a new contract, which replaces the previous agreement with American Airlines, to operate 40 CRJ-900’s for a five-year term beginning January 1, 2021 through December 31, 2025. Under the previous contract 30 CRJ-900 aircraft were set to expire in 2021 with an additional 17 expiring in 2022.
“I want to express my appreciation to the American Eagle team leaders who worked with us on this new contract,” said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Air Group. “This new contract will help to position Mesa for long term stability and improved performance on our American operation. This year has been difficult for our entire industry due to the Covid-19 pandemic, but I’m thankful that despite the obstacles, American has chosen to continue its long-standing relationship with Mesa.”
“I want to thank everyone involved for making this deal happen, especially our employees, who have shown unmatched professionalism and dedication throughout this difficult year,” said Brad Rich, Executive Vice President and Chief Operating Officer. “Efficiency and flexibility have been the pillars of our operation and the key to our low-cost structure. We are optimistic about our relationship with American and believe this new contract will be beneficial to both parties.”
Mesa Air Group, Inc. (NASDAQ: MESA) today announced that it has completed a second closing through its previously disclosed five-year Loan and Guarantee Agreement under the Coronavirus Air, Relief, and Economic Security Act (CARES Act).
The Loan Agreement provided a secured term loan facility of up to $200 million. On October 30, 2020, Mesa borrowed $43 million under the facility and today, completed a second closing to borrow an additional $152 million. These funds may be used for general corporate purposes and operating expenses, to the extent permitted by the CARES Act.
“I’d like to again express my sincere gratitude to everyone involved in making this deal happen. Our people have been working very hard to ensure Mesa and its employees are prepared to weather this storm”, said Jonathan Ornstein, Chairman and Chief Executive Officer. “These additional funds will substantially benefit our airline and the communities we serve as we continue to navigate the obstacles created by the pandemic”.
In connection with the additional $152 million drawn under the facility, Mesa issued warrants to the U.S. Treasury to purchase 3,819,095 shares of common stock, no par value. The Warrants have a five-year term from the date issued, were issued pursuant to the Warrant Agreement, and have substantially identical terms to the warrants issued on the initial closing.
Southwest Airlines (NYSE: LUV) today announced plans to expand its footprint in Chicago and Houston to give more travelers access to Southwest’s iconic Hospitality, low fares, and Customer-friendly policies.
Chicago O’Hare International Airport Work is underway to add new service from Chicago O’Hare International Airport (ORD), alongside existing service from the carrier’s longtime Chicago home, Midway International Airport (MDW). Midway remains one of the busiest airports in Southwest’s network. Since first arriving in Chicago in 1985, Southwest has grown into one of the city’s largest employers with more than 4,800 Chicago-based Employees.
George Bush Intercontinental Airport As Southwest approaches a commemoration of 50 years of flying, the carrier intends to return to Houston George Bush Intercontinental Airport (IAH), complementing its substantial operation at Houston Hobby (HOU). Intercontinental served as one of three airports where Southwest operated on its first day in operation, June 18, 1971. The carrier moved to Hobby Airport shortly thereafter though it operated service from both airports between 1980 and 2005. Southwest remains a key employer in the City of Houston, providing nearly 4,000 jobs.
“Southwest owes decades of success to our Employees and Customers who have supported our business in Chicago and Houston,” said Gary Kelly, Chief Executive Officer and Chairman, Southwest Airlines. “Today’s announcement furthers our commitment to both cities as we add service to share Southwest’s value and Hospitality with more leisure and business travelers.”
Service to both airports is anticipated to begin in the first half of 2021. Additional details, including schedules and fares, will be available soon.
Middle East Airlines (MEA) has taken delivery of Airbus’ A320 Family aircraft with manufacturer serial number 10,000. MSN10,000 is the third A321neo to join the all Airbus MEA fleet, taking the fleet size to 18 aircraft. MEA received its first A321neo aircraft earlier in 2020 and will be taking another six A321neos over the coming months.
The handover of the aircraft took place in Toulouse in the presence of Mohamad El-Hout, Chairman and Director General of MEA.
“We are honoured to receive the state of the art A321neo with its distinctive serial number 10,000 coinciding with the 75thanniversary of Middle East Airlines and specially after receiving MSN5,000 back in 2012. Since we first acquired an A320 Family aircraft in 2003, we have not only benefited from the outstanding operational efficiency of the aircraft but were also the first airline to introduce the wide-body cabin product on a single-aisle aircraft which has become a trend in the airline industry afterwards,” said MEA Chairman and Director General, Mohamad El Hout. “Unfortunately, due to the current situation in Lebanon, this time we will not be able to celebrate the delivery of the MSN10,000 in Beirut, as we did with the MSN5,000, but I am sure that in these challenging circumstances, it is a ray of light, hope and motivation to surpass our nation’s difficulties.”
“Airbus is proud to continue building its long-standing partnership with Middle East Airlines which already operates one of the most modern Airbus fleets in the world. As an all Airbus operator, MEA benefits from the Airbus’ unique fleet commonality between aircraft families and is now adding the third highly fuel-efficient A321neo to step up the game. I admire the agility and the resilience of this company in this complex environment,” said Christian Scherer, Airbus Chief Commercial Officer. “Delivering MSN10,000 is a milestone that demonstrates the success of the A320 Family and we thank our customers globally for their confidence in our products.”
MEA took on MSN5,000 in 2012, after 23 years of Airbus A320 Family production. The next 5,000 took just another eight years to mark this significant MSN10,000 milestone – again with MEA. This achievement is a testimony of the industrial advancement and capabilities by Airbus and the popularity of the latest, even more efficient NEO version of the aircraft.
The airline’s A321neo is powered by Pratt & Whitney’s PurePower PW1100G-JM geared turbofan engines and is configured in a comfortable two-class layout with 28 seats in Business and 132 seats in Economy Class. It is also equipped with the latest generation in-flight entertainment system and high-speed connectivity. Incorporating the latest engines, aerodynamic advances, and cabin innovations, the A321neo offers a reduction in fuel consumption of 20% as well as a 50% noise reduction.
Five-year contract with service scheduled to start October 2020
Opening a new crew and maintenance base in Cincinnati
Mesa Air Group, Inc. (NASDAQ: MESA) today announced plans to begin providing air cargo service for DHL Express with Boeing 737-400F cargo aircraft.
Under the agreement, Mesa will operate two cargo aircraft from DHL Express Americas global hub at Cincinnati/Northern Kentucky International Airport for a five-year term. The company will lease the aircraft from DHL with the first scheduled to be in service this October.
“We are very excited to enter the cargo market and diversify our business. Flying under contract on behalf of DHL is essentially the same business model Mesa has operated under for over 20 years,” said Jonathan Ornstein, Chairman and Chief Executive Officer. “Cargo transport plays a critical role in the health of communities and economies around the world. Mesa is well-suited for this new mission, and this is just the beginning of what we believe will be a long and productive relationship with DHL.”
“This new cargo operation opens new doors for Mesa,” said Brad Rich, Executive Vice President and Chief Operating Officer. “We are proud to offer new opportunities to our employees as we enter the cargo industry. In particular, Mesa pilots will now have the ability to earn a 737 type rating and receive the highest pay in the regional industry, all without leaving the company.”
“I’d like to thank all the people at Mesa, their counterparts at DHL and the FAA, who worked hard to bring this program to fruition,” said Captain Mike Ferverda, Senior Vice President of Regulatory Affairs, who is leading Mesa’s 737 certification process. “While much of the industry is challenged given the present COVID environment, we are pleased to expand our growth opportunities with this project.”
Alstom-led consortium delivers extension of Dubai Metro Red Line
A full turnkey integrated system
15km-long
50 Metropolis trainsets
Total value of the project is €2.6 billion
Alstom congratulates Dubai’s Roads and Transport Authority (RTA), on the inauguration of the Dubai Route 2020 Metro. This iconic project was ceremonially inaugurated by H. H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, and Ruler of the Emirate of Dubai on 7 July 2020, and was also attended by Henri Poupart-Lafarge, Alstom’s CEO and Chairman of the Board as well as the top management of the ExpoLink Consortium via video conference technology.
The new line project, commenced in July 2016 and carried out by the Alstom-led ExpoLink consortium, also composed of ACCIONA and Gülermak, consists of a 15km-long line, of which 11.8km is above ground and 3.2km underground, and an interchange on the Red Line. The extension of the metro has seven stations including Jabel Ali Station and the flagship metro station at the Expo exhibition site. The project is worth a total of €2.6 billion.
As part of the Consortium, Alstom was responsible for the integration of the entire metro system including 50 Metropolis trainsets produced in Alstom’s site in Katowice, Poland, power supply, communication, signalling, automatic ticket control, track works, platform screen doors and a three-year warranty on the whole system, as well as the enhancement of the existing metro line by upgrading power supply, signalling systems, miscellaneous communication and track works. The trainsets are 85.5 meters long and composed of five cars per trainset, and they will be able to carry up to 696 passengers each.
The train offers an excellent level of passenger experience, thanks to wide gangways, large doors and windows, three specific areas for Silver, Family and Gold Classes. Eco-friendly, the train is equipped with a full electrical braking system, LED lighting and other innovations to reduce energy consumption.
Alstom is a dedicated and long-standing partner of Dubai’s transportation and mobility development. Alstom delivered the Dubai tramway, the first fully integrated tramway system in the Middle East and the world’s first 100% catenary-free line, which was opened in November 2014. Alstom is also in charge of the maintenance of the Dubai Tram for a period of 13 years.
SEOUL, March 26 (Reuters) – South Korea’s National Pension Service (NPS) will vote for Hanjin Group chairman Walter Cho to keep his board seat in Korean Air’s parent firm Hanjin Kal at a shareholders’ meeting on Friday, the fund said.
In a statement on Thursday, NPS said it would also approve a board seat for telecoms industry veteran Kim Shin-bae, who was nominated by Cho’s sister and an activist fund that opposed Walter Cho.
Hanjin Kal’s annual general meeting is expected to be the culmination of an intense proxy fight to decide the group’s leader.
NPS, the world’s third-largest pension fund, had a stake of 2.9% stake in Hanjin Kal by the end of 2019.
(Reporting by Joyce Lee; Editing by Clarence Fernandez)
We thank the Administration, especially the President and Secretary Mnuchin, as well as the Senate for working together to take swift bipartisan action to support the American economy, including the 2.5 million jobs and 17,000 suppliers that Boeing, the aerospace industry and the U.S. rely on to maintain our world leadership in commercial, defense and services. The bill’s access to public and private liquidity, including loans and loan guarantees, is critical for airlines, airports, suppliers, and manufacturers to bridge to recovery.
Boeing’s top priority is to protect our workforce and support our extensive supply chain, and the CARES Act will help provide adequate measures to help address the pandemic. We have also taken a number of measures for affordability and liquidity as we navigate the challenges our industry currently faces, including forgoing pay for our CEO and board chairman, suspending our dividend until further notice, and extending our existing pause of any share repurchasing until further notice.
We appreciate the House taking swift action to support the American people.
Since the COVID-19 outbreak began, Emirates and dnata have been adapting operations in line with regulatory directives as well as travel demand.
The airline has aimed to maintain passenger flights for as long as feasible to help travellers return home amidst an increasing number of travel bans, restrictions, and country lockdowns across the world. It continues to maintain vital international air cargo links for economies and communities, deploying its fleet of 777 freighters for the transport of essential goods including medical supplies across the world.
With many of its airline customers dramatically reducing flights or ceasing services altogether, dnata has also significantly reduced its operations, including temporarily shutting some offices across its international network.
HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Group said: “The world has literally gone into quarantine due to the COVID-19 outbreak. This is an unprecedented crisis situation in terms of breadth and scale: geographically, as well as from a health, social, and economic standpoint. Until January 2020, the Emirates Group was doing well against our current financial year targets. But COVID-19 has brought all that to a sudden and painful halt over the past 6 weeks.
“As a global network airline, we find ourselves in a situation where we cannot viably operate passenger services until countries re-open their borders, and travel confidence returns. By Wednesday 25 March, although we will still operate cargo flights which remain busy, Emirates will have temporarily suspended most of its passenger operations. We continue to watch the situation closely, and as soon as things allow, we will reinstate our services.”
Having received requests from governments and customers to support the repatriation of travellers, Emirates will continue to operate passenger and cargo flights to the following countries and territories until further notice, as long as borders remain open, and there is demand: the UK, Switzerland, Hong Kong, Thailand, Malaysia, Philippines, Japan, Singapore, South Korea, Australia, South Africa, USA, and Canada. The situation remains dynamic, and travellers can check flight status on emirates.com.
Sheikh Ahmed added: “Emirates Group has a strong balance sheet, and substantial cash liquidity, and we can, and will, with appropriate and timely action, survive through a prolonged period of reduced flight schedules, so that we are adequately prepared for the return to normality.”
Cost reduction measures
The Emirates Group has undertaken a series of measures to contain costs, as the outlook for travel demand remains weak across markets in the short to medium term. This includes:
Postponing or cancelling discretionary expenditure
A freeze on all non-essential recruitment and consultancy work
Working with suppliers to find cost savings and efficiency
Encouraging employees to take paid or unpaid leave in light of reduced flying capacity
A temporary reduction of basic salary for the majority of Emirates Group employees for three months, ranging from 25% to 50%. Employees will continue to be paid their other allowances during this time. Junior level employees will be exempt from basic salary reduction
Presidents of Emirates and dnata – Sir Tim Clark and Gary Chapman – will take a 100% basic salary cut for three months
The Emirates Group has strong liquidity, with a healthy cash position but it is prudent that it take steps to reduce costs at this time. Emirates remains committed to serving its markets and looks forward to resuming a normal flight schedule as soon as that is permitted by the relevant authorities.
Safeguarding customers, employees, and communities
Emirates Group closely monitors the situation and keeps in regular contact with all relevant authorities, so that it can implement the latest guidance to keep travellers and its employees safe and healthy.
The company has strongly discouraged its employees from non-essential travel, implemented work from home policies for all employees where operationally feasible, enhanced cleaning and disinfection protocols at its facilities, introduced temperature screening at its key office entry points, and launched internal educational campaigns on hand hygiene and health practices to reduce risk of COVID-19.
Over the past weeks, the airline has also implemented enhanced cleaning and disinfecting measures on all of its aircraft departing Dubai as a precaution, and worked closely with airports to implement screening measures as required by the local authorities.
Frontline employees such as crew and airport teams have also been provided with support to stay safe while on duty, including providing hand sanitizers and masks where required.
The Emirates Group fully supports all initiatives to safeguard the health of communities in every market where it operates, including the UAE’s national COVID-19 response.
